NEWS RELEASE - 7-11-2005

Growth Prospects worth Billions for Automatic Energy Meter Reading Systems

A market worth billions is opening up for the automatic meter reading (AMR) of energy meters in Europe. In the Nordic countries, the replacement of 14 million meters is beginning and this year alone will see the installation of 600 000 new meters.

Sweden has decided to prohibit invoicing based on estimated energy consumption and order all of the nation's 5.4 million meters to be read remotely by the summer of 2009. The replacement process for Finland's 2.9 million meters is about to begin due to decisions taken by the energy companies themselves.

In the background of the process lies the agreement of all EU member countries to deregulate the internal energy market by the end of 2007, which requires real time data on measured energy consumption.

Through a data communication link, an energy company's IT system will be able to read and control the meter located at the consumption point. This offers new opportunities for more advanced customer service and, for instance, special offer campaigns.

- The demands set by legislators and energy companies are challenging for traditional AMR technologies. Data communications technology is advancing at a rapid pace, which makes it impossible for energy companies to commit themselves to technologies specified by single meter suppliers, says Timo Chrons, Managing Director of Aidon Ltd, which produces energy meters.

Advocating openness, Chrons has thoroughgoing experience of working with energy companies prior to Aidon, which operates in the Nordic countries. He says that the new regulations and changes in the energy companies' purchasing behaviour are finally shaking the foundations of energy meter manufacturers' customary status.

- European energy companies are facing a tough investment decision. They need a meter that functions using different data communication links and in various system environments, which is why we have developed the first energy meter based on the concept of openness, says Timo Chrons.

The AMR meter market is now opening up throughout Europe. At present, some 200 million energy meters must be read on site, which costs energy companies roughly 4.5 billion euros per year. In future, the volume and accuracy of data collected that way will not be sufficient.

Forerunners of automatic meter reading include not only Sweden and Finland, but for example Italy, where the nation's largest energy company has replaced the meters for all of its 27 million customers.

Aidon Ltd develops and markets equipment, software and services for automatic energy meter reading. The major customers of the company, which operates in Finland, Sweden and Norway, are energy companies. Aidon Ltd, founded in 2004, is owned by corporate management, staff and capital funds.

For further information, please contact Timo Chrons, Managing Director, Aidon Ltd, tel: +358 207 205 880.